Mitsubishi 2005 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2005 Mitsubishi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

Annual Report 2005
30
MITSUBISHI MOTORS CORPORATION
■ North Asia (China and Taiwan)
Expanding Operating Bases in Growth Markets
The North Asia region, particularly China, remains an
attractive market, despite a slower pace of growth in
motorization. MMC conducts business in this region with
local partners (See page 32).
In China, despite large sales of local-brand vehicles
manufactured by local partners, the brand image of
Mitsubishi vehicles is extremely favorable. This reflects
strong public support for the Mitsubishi Motors image of
durability and reliability, in addition to the strong local
presence of Mitsubishi group companies. MMC will
leverage the strength of the Mitsubishi brand in China to
further expand its operating base in the country.
■
Asia, ASEAN and Other Regions
Pajero
Production and sales as a Mitsubishi brand began in China in December 2004.
Net Sales
(¥ billion)
0
100
200
300
400
500
600
700
800
05 06 07
0
20
40
60
80
100
05 06 07
0
100
200
300
400
500
600
700
800
05 06 0708 08 08
Plan* Plan* Plan*
Unit Sales
(Thousand units)
Operating Profit
(¥ billion)
*MMC revised its targets for fiscal 2005 when it released its fiscal 2004 full-year financial results on May 23, 2005. Targets
for fiscal 2006 onwards are those announced in the Mitsubishi Motors Revitalization Plan on January 28, 2005.
Building Stronger Alliances With Local Partners to
Promote the Mitsubishi Brand
In North Asia, MMC is targeting sales of 231,000 units in
fiscal 2005, an increase of 14% year on year.
Positioning South East (Fujian) Motor Co., Ltd. (SEM)
and Hunan Changfeng Motor Co., Ltd. (CFA) as key
production bases in China, MMC will continue to enhance
relationships with these two companies. MMC plans to
take an equity stake of up to 25% in SEM, and allow the
company to begin production and sales of Mitsubishi-
brand vehicles. In particular, SEM will focus on expanding
its presence in the passenger car segment, which will
account for a significant share of the Chinese market
going forward. In December 2004, CFA began production
of the Mitsubishi-brand
Pajero
model. Moreover, MMC
plans to establish a new venture with CFA to establish a
production base for SUVs centered on the
Pajero
, which
enjoys high market visibility. MMC will also examine the
possibility of reinforcing its two local engine-manufactur-
ing ventures with the aim of expanding their roles as key
production facilities in Asia.
In the course of implementing the above measures, to
unify the Mitsubishi brand, MMC plans to establish a local
subsidiary in mid-2006 to oversee all sales operations.
With this move, MMC will further build and expand its
sales network. Furthermore, the company will establish a
local R&D center to enhance quality and build a frame-
work for incorporating market needs in products in a
timely manner.